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[geodan]

$GXRFF IsProsperaHighestPotentialOilStockOutThere.That Does Not Require Luck?
Production already is up about 1,000% in 2022.

They are converting old oil fields, with massive oil in place compared to Prospera's market cap, to horizontal drilling.

The horizonal wells access 200 times more oil than old vertical wells did.

Prospera (PEI.to, GRXFF OTC) is my #1 buy last week. The video in this article by Shubham Garg is why bought it. The video is well worth the time to watch it. I sold most of my Prairie Provident to buy it (timing was a blessing as PPR.to dropped hard right after doing so on an iffy Q, had no expectation of that). I had to swap out of an oil/gas to get the cash to buy Prospera and decided that PPR.to was the highest risk and most fairly valued oil/gas had (had a 15 bagger on it on average).

Another oil stock I have, Frontera FEC.to, is about 1 PE now as comparison, and I just cannot sell 1 PE stocks. Prospera is in a unique situation. They are converting vertical well oil fields to horizontally drilling in Canada.

Again, that video is worth watching, he is an oilfield expert (Shubham Garg) who watches every Canada oil stock out there it seems. The porosity and permeability are huge, but the oil is thick and in a very short layer. So far its working, Prospera with just a few new wells has gone from less than 100 bopd to over 1,000 bopd in one year. I think they could get to maybe 10,000 to 20,000 bopd.

So only 2-3 meters thick vertical wells, with very heavy oil. It is so heavy they cannot pipeline it, they have to truck it. The fact any oil comes out is a sign of the extreme porosity and permeability. In the past they got to 10,000 bopd with those types of wells companywide!

They went bankrupt in the downturn, and like Petrus, an oil family came in and saved the company with a cash injection, as Garg has detailed in his video. And then the idea of converting the fields to horizontal wells.

The oil is only 600 meters down, so horizontal wells are cheap to drill there. A 2-kilometer lateral will access 200 times more oil than the old vert wells could! There is huge amount of that oil on their lands. The recovery rate will go way up, even without water flooding or other enhanced oil recovery methods.

Petrus has 30 bagged off the bottom and maybe it can bag another 3 to 5 times from here or more than 100 bag off the bottom after Gray brothers injected cash. Is Prospera a Petrus2?

Right now, know of no other oil company more likely to 10 bag than Prospera (PEI.to and GXRFF), without getting lucky on exploration. Going back to 10,000 bopd, seems in the cards easy. There is no question the oil is there; it's been known to be there for decades. The key is being able to pump out 200 times more per well with the new horizontal drilling technology. There is about 375 million barrels in place, an extra 15% recovery (reasonable) means an extra 62 million barrels of production at $90 = $5 Billion USD extra revenue and the current market cap is about $20 million. My guess is they will use the many old vertical wells for water flooding, water can be injected into those vert wells fast because it is so much thinner than heavy oil.

Think it is the highest potential oil stock out there that does not require luck. And it can be a lot better than a 10 bagger. A 30 bagger is quite possible. The stock is unknown. Never even heard of it until little over a week ago, and I have 25 or so oil/gas stocks and have followed the sector for 20+ years. Do see Prospera as Petrus2.

Disclosure: I/we have a beneficial long position in the shares of GXRFF and PEI.to through stock ownership.

I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.